In today’s lesson, we are going to look at the expression “Bear Market Rally.”
Check out this headline, which was published by Reuter’s yesterday.
So what does that mean?
Well, first let’s see what a bear market is.
A “bear market” describes a situation where the overall stock market drops in value by 20% or more from its recent highs. In other words.. when the stock market is in terrible shape!
So what about a “bear market rally”? Well, that’s when the prices turn around suddenly and start to rise – in other words, prices bounce back – but that rally doesn’t last, and prices continue to fall.
And finally, what is a “strategist”? Well, a strategist is someone who thinks about and plans an action. So, a strategist at Morgan Stanley would be someone who analyzes the market in order to see what people should invest in, and when.
So, in summary.
- Bear market: A stock market where prices are falling fast.
- Bear market rally: When prices temporarily start to rise during a bear market.
- Strategist: The person who analyzes a situation and plans an action.
That’s our lesson for today. Remember, you can reach me here with any questions or comments. Have a great day!